JioMart, the online shopping platform of Reliance Retail, a major player in the Indian retail industry, has initiated a restructuring process that involves laying off more than 1,000 employees, with plans to reduce an additional 9,900 positions in the upcoming weeks. The primary objective behind this move, as reported by the esteemed Indian publication Economic Times, is to enhance the company’s profit margins.
The transformation comes as a response to JioMart’s earlier aggressive pricing strategy, which had raised concerns among traditional distributors regarding potential disruptions in the supply chain. However, with the company’s renewed focus on improving profitability and minimizing losses, a shift in strategy has become apparent.
Moreover, JioMart intends to shut down over half of its 150-plus fulfillment centers that cater to neighborhood stores. This decision aligns with the recent completion of Reliance Retail’s acquisition of the Indian cash and carry business of German retailer Metro AG, a deal amounting to a significant $344 million.
Considering Reliance’s substantial share in India’s flourishing online B2B retail sector and the inclusion of Metro’s workforce of 3,500 individuals, it is expected that there will be overlapping roles, necessitating further adjustments and changes within the organization.